Managers at Holman-OEM in Camborne, a metal fabrication company, say they have a cash-flow crisis, but are still seeking new financial help.

The company, formed out of Compair Holman, blames previous business forecasts which have not materialised.

The firm began trading more than a year ago, when 19 engineers took over part of the Compair Holman factory.

The workforce had increased to 27 but despite a full order book the company has been experiencing cash-flow problems, which it says have now reached crisis point.

The firm is talking to various funding agencies and insists that the dream of keeping engineering alive in Camborne is not over.